Life Insurance for Seniors Over 80
It is absolutely possible to get an affordable life insurance for seniors over 80. We will show you the right path to the best policy within this article.
There will be no medical exam and no waiting period [depends on underwriting & you].
When you reach the age of 80 years in life, you come across various difficult decisions. One of such decisions is to buy a life insurance policy at this age.
Although important it may seem, yet there is this misconception that people over 80 can no longer get life insurance [definitely, you can buy one].
There are several insurance companies that offer affordable life & burial insurance for seniors.
We recommend buying a whole life insurance. Why? We have discussed everything below.
In order to cover the accelerating funeral costs, it is always safe to have a life insurance policy.
Other than funeral costs, there are plenty of uses of life insurance policy at this age which help in easing off the financial burden in a major way.
If you are planning to buy one, there are important things that you need to know so you can get the best deal.
This article is going to clear your doubts about buying an insurance policy at the age of 80 years and above.
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Here is a list of sections we have covered in this article. Click on any of the links to go to that section or just keep reading.
- Health Condition – The Most Important Point
- Guaranteed Acceptance Policy – Yes or No?
- Whole Life Insurance – Fixed Premium
- Term Life Insurance – Is It Beneficial?
- Universal Life Insurance – Is It a Good Choice?
- Should I Get a Term, Universal or a Whole Life Policy?
- How About a Graded Life Insurance?
- The Need for Buying a Life Insurance for Elderly Over 80
- 4 Important Points You Must Know
- How Do You Get Low Premiums?
- Finding the Affordable Life & Burial Insurance for Seniors Over 80
- Buy Only From the Trusted Brands
- Read the Contract Carefully
- Research Your Options Online
- Last Few Words
Health Condition – The Most Important Point
Most of the time an underwriter checks the health condition before issuing any policy.
For seniors over 80, it is very common to have some minor health problems.
Just don’t be afraid of the medical tests from the beginning. You can easily get through the medical tests if there is no major health problem.
In fact, it will be a good idea to present your medical fitness records to the insurance company if you are enrolled in some fitness program.
There are various health institutions that provide certifications of health to the senior citizens to justify their claims of good health.
However, if you believe that you can’t be qualified after medical tests due to some prevailing medical condition, you can go for the guaranteed policy with no waiting period which is expensive but EASY to get.
Guaranteed Acceptance Policy – Yes or No?
In this policy, you will not have to provide any type of documents of health or fitness records. You will be able to purchase this policy instantly on application.
As the policy does not require any documentation work to be carried out, it gets a little expensive than standard insurance policies.
However, it is very much convenient and sought after when there exist some medical issues among the applicants.
Given the higher rates of this policy, senior citizens often tend to refrain from buying it.
No worries! Below, I have discussed other options and ways to get an affordable policy.
Depending on your need, you can choose the kind of policy you want to buy since there are different types of life insurance over 80.
Here we have categorized various policy options that are available for senior citizens in standard markets.
Whole Life Insurance – Fixed Premium
If you are looking for a life insurance that can offer lifetime coverage, you should get the whole life insurance.
Since it provides lifetime coverage, it charges higher premiums compared to term life insurance.
Moreover, the premiums payments are usually fixed but the whole life features a cash value.
The entire life of the insured person is covered under this plan.
As you can accumulate the cash value and avail the death benefits too, this policy has little variation from the universal life insurance policy in terms of flexibility of investments (We discussed universal policy later in this article).
The dividends are reinvested into the basic cash value and the interest can be accumulated over the period of time.
One can also avail tax redemption benefits on the cash value built up in this policy.
The policyholder can also borrow a sum of the loan on the cash value from the policy. The policyholder is allowed to withdraw a certain sum of money from the policy up to the value of total tax-free premiums paid.
The major advantage of this policy is that even if you withdraw the amount, the withdrawals affect only the cash reserve value and not the death benefits from the policy.
For more details on the whole life plan, read it.
Term Life Insurance – Is It Beneficial?
Term life insurance is not worthy at this age. You can’t renew the policy when it will expire[we have discussed later in this article].
Let’s find some more information about term policy
Term life insurance refers to the amount which is paid to your nominee giving coverage for a certain period of time that can range usually anywhere in between 1 to 20 years.
If you are looking for death benefits, then term policies will certainly help but if you aim to build up the cash value, it may not be much rewarding.
Another significant thing to notice about term policy is that the insurance will stop if you will stop paying its premiums. There are clauses to define this rule.
This life insurance policy gives financial protection for a certain period of time (as mentioned not more than 20 years for the elderly over 80).
Compared to permanent life insurance, term life insurance is a less costly choice. Many prefer to avail this as it can cushion lost potential income and it can serve as a safety net.
However, in getting term policy you need to take note that you are covered only for the specific timeframe. It is helpful to cover the mortgage, any debts as well as burial expenses.
In order to elaborate term life insurance, here is an example-
If Mr. X wants to provide coverage to his wife with $10,000 for 5 years, he has to pay his monthly premiums as already discussed with the insurance firm.
If he dies before completion of 5 years, his wife gets the assured amount. However, if he survives this time period, they get $10,000 along with the accumulated rate of interest without any other cash built up.
Still confused? Go through this article for more details.
Universal Life Insurance – Is It a Good Choice?
This is different from the whole life insurance since it is much more flexible which means that you have the option when it comes to the amount of premium payment you want to pay and the coverage amount.
Should you get a universal life insurance?
It basically depends on your goal. This insurance is often used by many to preserve wealth.
It is basically considered a hybrid of the term and whole life insurance plan.
As mentioned above, it enables you to build and preserve savings at the same time providing the benefits of a life insurance policy.
One portion of the amount that you pay towards the monthly premium is kept aside to meet the cost of the policy which is functional in providing the death benefits to the beneficiary.
At the same time, the remaining portion of the premium is used for investment to help the policyholder to accumulate wealth and gather savings.
The major advantage of such policy is that you pay for the initial years towards the premium and then the investments start covering the cost of premiums of the policy.
Being 80 years old, there are different aims of buying insurance policies. If your aim is to provide a lifelong gift to your loved ones, the universal life insurance policy can be just the perfect idea! Details are available in this content.
Should I Get a Term, Universal or a Whole Life Policy?
The most critical part is choosing the right policy.
For age 80 and above, it is strongly recommended that you get a whole life insurance.
It will entitle you to get a lower rate of the premium compared to term life policy at this age.
However, if you want to cover a very small amount, in that case, term life insurance could be a choice.
But, you should remember that after 10 years, you will be 90+ years old and at that age, you will not be able to renew the policy. Read about the maximum age restrictions here.
The universal policy also doesn’t worth because you don’t need a huge coverage. And, you have to pay a higher premium at the beginning of the policy.
Ultimately, as a buyer, you need to make the choice based on your requirement of life insurance policy.
How About a Graded Life Insurance?
Another option for over 80 years is graded life insurance.
However, you should take note that you may not qualify for the death benefit if you’re to pass within 2 to 3 years of buying the policy.
But once it has matured, your beneficiaries can get the complete death benefits stipulated in your life insurance contract.
Basically, the graded benefit life insurance policies are meant for people who are not eligible to attain the life insurance policy in a traditional way.
Actually, guaranteed policies are included in graded benefit type even if you are in your 40’s.
“During the initial years, this policy pays out only limited death benefits however it takes only 3 to 7 years for the policy to reach the face value. The premiums required to be paid are usually higher than standard policies for life insurance.”
Such policies are in the best interest of those who are at a risk of death in the next 5 to 10 years but can survive for at least 2-3 years until the policy reaches its maturity value.
The Need for Buying a Life Insurance for Elderly Over 80
There are different reasons for people who choose to buy a life insurance policy at a later age (80 years).
Having known these reasons it will be easier to understand the need for the type of life insurance policy that seniors must buy.
We have mentioned the most commonly found reasons here to throw some light on the topic:
Rising Funeral and Burial Costs
Although the rising GDP is good news for the economies of the countries, the standard of living has also risen in terms of expenditure with it.
Elderly people do not like to hear about the expected funeral cost that their family may have to bear on their demise from the world.
They want to keep their head high even during the last moments with their loved ones.
Therefore, most of the people who reach at the age of 80 understand the mortality aspects of life and buy a burial insurance for parents over 80 to meet their last expenses.
Securing the Future of Their Significant Other
There are many cases when the elderly people act as the serving hand in the family. They must be supporting their spouse or some other family member with their income while they are alive.
The fear of the upkeep and financial problems of their survivor often propagates them to buy some life insurance policy.
It makes them rest assured that their loved one who is financially dependent on them can make the ends meet even if they die accidentally.
Most of the people are worried about financial independence and living costs of their significant spouse after their own death.
Leaving a Gift or Legacy Behind
Families these days are overburdened with financial worries in various aspects- college fee of children, rising medical expenses, weddings and other functions in the family- everything requires a large sum of money to be fulfilled.
Elderly people who have crossed these stages in life understand the implications of money and thus want to leave a financial gift or legacy behind for their younger ones.
Some people specifically buy a policy in the name of their younger children or grandchildren to attain the satisfaction of having contributed or leaving a gift even after their own death.
They want to be remembered by their children as someone who always loved, cared and thought for their family concerns.
They want to fulfill their responsibilities as the elders in the family by always remaining the giving hand and not being the financial burden on their children.
Buying a life insurance policy in these years of life can be really helpful in attaining this aim.
Payment of Their Pending Debts or Medical Expenses
While reaching the age of 80 years, people tend to acquire a lot of medical problems. Medical expenses are very high these days and a significant crunch of money is being spent on their medical bills and payments.
Other than medical bills, there are various debts that may occur due to a shortage of money in their lifetime in order to uphold the status quo that needs to be maintained.
Buying life insurance policy helps them to pay off their pending debts, medical bills or to get the release of mortgages etc. even after their death.
They don’t want their name or family to be questioned due to lack of funds due to non-payment of the pending bills.
Life insurance policy helps them to lead a life of satisfaction and free of financial worries in many ways.
4 Important Points You Must Know
The following outlines the features of a life insurance policy:
Age: It is one of the primary factors that determine the premium you have to pay when you want to get an insurance package. The plans may vary depending on the insurance package.
Some insurance companies accept applicant’s age over 90. Hence, getting a policy for elderly over 80 is not going to be difficult for you.
As an applicant, you must find the insurance firms in your region that provide such policy offers for seniors.
Cost: The cost of an insurance policy varies depending on the age and the coverage amount so it is just a matter of finding a plan that best fits your budget and your needs.
You need to make an outline of the points that should be covered by the policy and the budget that you can allocate from the monthly expenses towards buying insurance.
Death Benefits: In terms of death benefits, the coverage amount may range from $5000 to $25000.
For the higher amount of death benefits, you may have to keep aside a greater amount of money per month towards paying the premiums.
Questions about Health: You may be required to answer some health questions. But there are insurance providers that don’t ask health questions.
Depending on the type of insurance plan you will be asked about your health. Guaranteed life insurance for seniors is the most commonly purchased plan.
For example, if you are going to buy “no medical exam no waiting period policy” or “burial policy”, there may be no questions asked at all.
However, for standard life insurance policy, you may be asked to provide fitness and medical certificates too.
How Do You Get Low Premiums?
For any person who wants to purchase an insurance policy, the goal is to find one that has low premiums but allows you to maximize the potential benefits that you can get.
However, for someone over 80, there are ways to have low premium especially if you did not have any major surgery (here is a list of major surgery) and any serious health condition.
To get low premiums, you have to stop smoking and drinking.
These two habits are the root causes of a myriad of health problems among adults and the worst are also the causes of death.
We suggest the young people quit smoking & drinking, a year before applying for a life insurance.
But! Now it is not wise to wait another year because you are already over 80 and every year you will see a dramatic increase in the insurance premium.
If you smoke, you can get the rates applied to smokers.
If you have a minor health problem, you don’t have to worry since it should not impact the premiums.
Some insurance companies may require that you undergo medical tests. If you feel like you would not qualify for much lower premiums, you might want to choose this option.
You don’t have to worry about undergoing certain tests. The healthier you are, the higher the chance you can lower your premiums.
Even if you cannot lower them, it is still a must that you get a life insurance so your loved ones can get your death benefits upon the time of your death.
Getting a No Exam Policy?
If you know that you have a condition that can affect the premiums you will have to pay, then it is strongly recommended that you get a no exam plan.
The premiums are slightly higher but you are guaranteed that your insurance application is approved for this kind of policy you want to get.
Finding the Affordable Life & Burial Insurance for Seniors Over 80
Every person has different needs and has their own situation.
So, when it comes to finding the best life insurance for elderly parents over 80, it is always best to take the time to compare the different choices.
Here we come in your help.
We have the most advanced policy comparison tool that you can use.
Choose your state from the box below and compare the rates by getting quotes.
Here are some tips to help you find the best life insurance deal:
Buy Only From the Trusted Brands
Before investing your hard earned money into some company’s insurance plan, you should be sure that the company has a good reputation.
A lot of people end up having problems later on since some insurance companies may file for bankruptcy or some companies are just scam insurance providers.
Check if the insurance company has been around for years. There have been a lot of cases where scammers pose as insurance providers.
These cases have become a common sight in the market. Therefore, do not go by the offers that appear too much lucrative.
Apply a well-researched marketing approach before associating with the insurance firms. You can even choose to view their insurance license if any doubtful element comes forth.
Read the Contract Carefully
Compare the different prices and once you have finally sorted out your options, it is now much easier for you to determine which insurance policy is the going to suit you the most.
Just because you pay expensive premiums does not mean that you have the best deal.
Apart from comparing the prices, delve into the details of the contract. Read the terms and conditions along with the other pertinent details stipulated in your life insurance policy.
There have been several cases when people ended up paying money much more than they actually needed to pay for the points they intended to get covered by their policy.
It is all about making the informed choices. Read in between the lines of the contract and ask the agent about any hidden clauses too.
It will not be a bad idea to get the policy documents verified by a legal counselor (if you know someone in person).
Specify to the insurance agent or company representative about what areas you need to get covered diligently in your policy. It may not only reduce the price of your insurance policy but also give you a clear idea of what and how much to expect from your insurance plan.
Research Your Options Online
Internet serves to be one of the best mediums for buying life insurance plan. You can research your options without having to rush around the shops and offices to find the plan that best suits your needs.
There are various tools available online that help in comparing and analyzing the different insurance plans offered by various companies at the same time. You can choose among the plans available at their websites and simply compare them to find what suits your needs and the budget.
One added benefit of online research is that you can seek reviews of each and every policy through the online help forums that are created by real-time buyers of the policies. All types of doubts and queries can be proposed to be addressed on these online help forums.
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You can book an appointment directly with the company representative instead of using a broker in between you and company to strike the right deal.
Therefore we advise our customers to research their options online and make the most viable decision of buying the policy.
Last Few Words
There is no arguing about the importance of having a life insurance for seniors over 80.
The need and the availability of life insurance policy have been determined and well addressed by the insurance companies these days.
This is the reason that they can still get life insurance and have options to choose from given vivid options of insurance policies as per their own specifications and budget.
By having a life insurance policy, seniors never have to worry about the people that they are going to leave behind since they will know that their loved ones can get the benefits of their life insurance.
There are various other benefits associated with having a life insurance policy while the biggest being the ability to provide financial independence to the people you leave behind at the end of your life’s journey.
It is, therefore, never too late to buy a life insurance policy, even if you are 80 years old!